A depression in the economy can cause many home owners to throw up their arms and sell their homes in order to get rid of financial difficulties. But does that mean they can give away their property to a lender only because they cannot afford it anymore! Also those in financial crisis cannot treat their homes as easy to dispose consumer goods. I agree that a real estate investment can also be termed as an illiquid investment. But real estate history has known that selling a home takes much planning and patience for months before a suitable buyer turns up.
The early 1990s saw homes selling at a very fast rate within few weeks or months. The realtors of that era did not know what it was like to wait on homes for many months before selling it to a suitable buyer for a good price! However, in today’s scenario, if sellers cannot find suitable buyers for their homes, they merely think of ways to get rid of the house rather than wait for the market to stabilize and buyers to turn up!! All they do is sell their home to a lender who offers them the amount they need to clear up a loan.
But what if, each of the ten lenders you visited offered $175,000 in place of the $200,000 that they were due on their loan? They would indeed keep their home for another few years until they paid off a large portion of the loan. One such home owner who decided against giving up his home to a lender when in financial crisis is my friend Harry. Harry and his wife lived in a home that was too small to go with the interest and the loan. When they tried selling, they were not able to find any lender who was ready to offer them a price with which they could clear off the loan, let alone buying new home! So they continued to stay in that house until they cleared the loan. And in the meantime, they began to like their place and the neighborhood.
So think twice before you approach a lender to get rid of your home! If you give up your house to a lender, that will surely have a negative impression on your credit score and history. Instead by finding ways to love your house, you can be a lot happier!!
For additional resources and information please visit the following sites.
Bill Fields All Star Coaching Program: http://www.AllStarCoaching.net
GreatWest GMAC Search all MLS Listings: http://www.LocalHomeLink.com
GreatWest GMAC Consumer Buyer/Seller Blog: http://www.GreatWestBlog.com
T. Sami Siddiqui (Broker/ Owner) Buzz About Sacramento Blog: http://www.samisiddiquiblog.com
Brodie Stephens (Executive Vice President) One Stop Blog: http://www.brodiestephensblog.com
GreatWest Podcasts- Weekly Updates on new REO, Short Sale, Bank Owned Foreclosure Listings: http://www.HouseTalkOnline.com
GreatWest Videos: http://www.youtube.com/brodiestephens
Facebook Brodie Stephens Profile Page: http://www.facebook.com/brodiestephens
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GreatWest Real Estate Careers- GMAC is looking for Professional Realtors to Join Us: http://www.CareersWithUs.com
Global Employee Relocation: ahttp://www.employeerelocation.blogspot.com
Apply for a Loan: http://www.choice1funding.com
ActiveRain Blog Brodie http://activerain.com/blogs/brodiestephens
ActiveRain Blog Company http://activerain.com/blogs/greatwestgmac
Company WordPress Site http://www.thehomeholders.com
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